Ground-up construction loans
Ground-up construction loans up to 80% of cost for investors who build.
New construction financing on single-family, 2–4 unit, condo and townhome projects. The lot is funded at closing, the build budget is released in draws against verified progress, and loans run $300k to $8M.
Ground-up construction terms
| Term | Limit |
|---|---|
| Upfront loan to cost | Up to 65% |
| Total loan to cost | Up to 80% |
| Loan to ARV | Up to 65% |
| Minimum FICO | 650 |
| Experience | 3 completed deals, including 1 ground-up |
| Loan size | $300k – $8M |
| Term | 12–24 months |
| Closing | 7–15 days |
| Refinance: cash-out / rate-and-term | 55% / 62.5% |
How construction draws work
Up to 65% of cost is funded at closing — typically the land and early soft work. The rest of the loan, up to 80% of total cost, is held and released in stages. You finish a phase, request a draw, the lender inspects, and funds are released against the line items in your scope of work and budget.
New construction hard money vs a bank construction loan
This program is private, asset-based builder financing — what investors often call new construction hard money. The loan is sized on the project’s cost and completed value, closes in 7–15 days and runs 12–24 months, without a personal debt-to-income calculation. Bank construction loans usually underwrite your personal income and other debts as well as the project, and tend to take longer to approve. The trade-off is price: private construction money costs more, so it suits builders who value speed and project-by-project approval.
Who this is for
Builders and developers who have finished at least three investment deals, one of them ground-up, and are putting up for-sale or rental product on a lot up to two acres, outside rural areas.
- Max loan to cost
- 80%
- Max loan to ARV
- 65%
- Min FICO
- 650
- Loan size
- $300k – $8M
- Term
- 12 – 24 months
What underwriting looks at first
- Your ground-up track record: deeds and settlement statements
- Approved plans and permits, or a clear path to them
- A line-item budget and draw schedule
- Your general contractor and their history
- ARV and the exit: sale or rental refinance
Construction loan questions
Can a first-time builder get a ground-up construction loan?
Not on this program. It needs three completed deals including one ground-up project. If you have flips but no new builds yet, start with a heavy-rehab fix and flip loan.
How much of the land is financed?
Up to 65% of cost can be advanced at closing. Total financing, including draws, goes up to 80% of cost and 65% of the completed value, whichever is lower.
Is this a new construction hard money loan?
Yes, in the usual sense of the term: the money comes from private lenders and is sized on the project, not on your personal income. Loans run $300k to $8M with a 650 minimum credit score.
What happens when the build is finished?
Sell it, or refinance into a DSCR rental loan once it is leased. Plan the exit before you break ground.
Easy Lending USA is not a lender, a bank, or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision. Business-purpose loans only. No upfront fees of any kind.
Related programs
Renovating instead of building? See fix and flip loans. Holding the finished units? DSCR loans qualify on the rent. Every program is compared on the loan programs page.
Run the numbers first. The free construction loan calculator sizes the loan and your equity and builds a month-by-month draw schedule with the interest and the interest reserve.